DfT to remove EU 'Vnuk' motor insurance law

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Government announces plan not to implement EU law,  claiming British drivers will avoid a £50 a year insurance hike

Controversial EU 'Vnuk' motor insurance law requiring certain classes of vehicle to be insured on private land to be removed from British law.



Move announced by Transport Secretary Grant Shapps (Sunday Feb 21st) this week by DfT will ensure every British driver is spared an estimated £50 annual increase in insurance premiums. Government plans to bin the EU’s ‘Vnuk’ motor insurance law – which requires insurance even on private land for a wider range of ‘vehicles’, including ride-on lawnmowers and mobility scooters. Decision to scrap Vnuk from British law would "reiterate benefits of leaving the EU, as we take back control of our own laws and regulations."

DfT claim had the EU law been implemented in Great Britain, it would have meant the insurance industry would have been liable for almost £2 billion in extra overall costs. They believe that these costs would likely have been passed onto their customers – British road-users. "Now we have left the EU, the measures no longer need to be implemented, helping road-users across the country steer clear of increased premiums – a clear win for motorists in Britain."

Bypassing Vnuk will also protect the existence of the UK’s world-leading motorsports industry. The EU rules would have meant any motorsports collision involving vehicles from go-karting to F1 would have been treated as regular road traffic incidents requiring insurance. This could have decimated the industry due to the additional insurance costs of roughly £458 million every single year. Scrapping the rules will save the industry from potential collapse and secure hundreds of thousands of jobs in the sector in the process.

Transport Secretary Grant Shapps said:

We have always disagreed with this over-the-top law that would only do one thing – hit the pockets of hard-working people up and down the country with an unnecessary hike in their car insurance. I am delighted to announce that we no longer need to implement it. Scrapping this rule would save the country billions of pounds and is part of a new and prosperous future for the UK outside the EU – a future in which we set our own rules and regulations. As well as the likely financial burden on British road-users, the Vnuk rules are considered unnecessary as there are already insurance packages available to Brits that cover certain risks on private land.